This Wednesday, April 18, MPX and global player, E.ON AG, headquartered in Germany, have signed definitive agreements for the creation of a joint venture (JV) that will be the largest private energy company in Brazil. Together, the companies will develop conventional and renewable energy generation projects, as well as engage in supply and marketing activities in Brazil and Chile.
Announced in January, joint venture negotiations between the two companies are now concluded with today’s contract, which includes agreement on a new organizational structure, affirming operational principles that were designed earlier this year. 11,000 MW of already-licensed MPX projects will be partially assigned to the JV.
Eike Batista, EBX Group President and Chairman of the MPX Board of Directors commented, “The successful completion of this step makes us more confident that this strategic partnership with E.ON will help us to grow quickly and with technical expertise. MPX and E.ON have enormous synergy. We have extensive knowledge of the market and 14,000 MW in projects already licensed, of which 11,000 MW will be developed in partnership with the JV. Our partner, E.ON, has great expertise in power generation, operating 69,000 MW in gas, coal and renewable energy projects around the world.”
11,000 MW in projects
The new company formed by MPX and E.ON will control 50% of 11,000 MW of already-licensed MPX projects. These are the thermoelectric power plants (UTEs) Açu in Rio de Janeiro (5,400 MW) and Central Castilla in Chile (2,100 MW); the Sul and Seival thermoelectric power plants in Rio Grande do Sul (1,300 MW); and expansion of the Parnaíba thermoelectric power plant (1,500 MW). Additionally, through the JV, E.ON will have a call option for an additional 38.9% of the book value of UTE Açu, thus allowing each partner to reach a 50% economic stake in the project. As a member of the minority shareholders group, E.ON will be entitled to appoint a representative to the MPX Board of Directors.